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Check Before You Invest : Kesar India Ltd

BSE: 543542 NSE: ISIN: INE0L1C01019
  |   Sector:  Construction & Infrastructure   |   Industry:  Construction - Real Estate

Snapshot

Q.1 Which industry/sub-sector does Kesar India Ltd belong to?
Kesar India Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.
Q.2 Is Kesar India Ltd a good quality company?
Kesar India Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Kesar India Ltd undervalued or overvalued?
Kesar India Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 126.22 108.57
Price to Book 12.54 20.55
Price to Sales 25.53 35.91
EV to EBITDA 81.04 131.45
Q.4 Is Kesar India Ltd a good buy now?
Kesar India Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Kesar India Ltd?
Kesar India Ltd revenue growth is 53.3% for FY-2025, which is below its 5-year CAGR of 178.67%, indicating slower growth.

Q.2 Gross Profit margin of Kesar India Ltd?
Kesar India Ltd Gross profit margin which is the profit after deduction of direct costs, is 31.7% for FY-2025, which is above its 5-year median of 27.4%, indicating increasing margins.

Q.3 Operating Profit Margin of Kesar India Ltd?
Kesar India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 30.39% for FY-2025, which is above its 5-year median of 26.57% indicating increasing margins.

Q.4 Net Profit Margin of Kesar India Ltd?
Kesar India Ltd Net Profit Margin is 22.97% for FY-2025, is above its 5-year median of 19.13%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 31.7 27.4
Operating Profit Margin (%) 30.39 26.57
Net Profit Margin (%) 22.97 19.13

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Kesar India Ltd?
Kesar India Ltd Return on Asset is 19.1%, which is above its 5-year historical median of 15.45%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Kesar India Ltd?
Kesar India Ltd Return on capital employed is 41.15% for FY-2025, which is in line with its 5-year historical median of 39.3%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Cash conversion cycle of Kesar India Ltd?
Kesar India Ltd Cash conversion cycle is 128 days, in line with its 5-year historical median of 128 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

C: How much debt does the business have and is it at a sustainable level?

Q.8 Debt to Equity ratio of Kesar India Ltd?
Kesar India Ltd Debt-to-Equity ratio is 0.56, which is above the industry average of 0.23, indicating higher debt levels in the industry.

Q.9 Debt to cash flow from operations of Kesar India Ltd?
Kesar India Ltd Debt to cash flow from operations is -2.7, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Kesar India Ltd?

Q.1 Promoter shareholding and pledge status of Kesar India Ltd?
Promoters hold 71.99% of the Kesar India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Kesar India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Kesar India Ltd vs industry peers?
Kesar India Ltd revenue CAGR is 178.67%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 53.3 0
Gross Profit Growth (%) 85.7 14.9
Operating Profit Growth (%) 71.4 10.4
Net Profit Growth (%) 90 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.83 0.1
ROE (%) - 1.36
ROCE (%) 41.15 3.88
Cash Conversion Cycle (days) 127.96 439

Valuation & price assessment

Q.1 Stock return of Kesar India Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of 243.98% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - 244% 93.5%
Q.2 Valuation ratios of Kesar India Ltd vs historical?
The current P/E ratio of 126.22 is higher than its historical median of 108.57, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 126.22 108.57 33.43
Price to Book 12.54 20.55 1.53
Price to Sales 25.53 35.91 5.23
EV to EBITDA 81.04 131.45 14.43

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